STAND. COM. REP. NO. 149

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 233

       S.D. 1

 

 

 

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

 

Sir:

 

     Your Committee on Health, to which was referred S.B. No. 233 entitled:

 

"A BILL FOR AN ACT RELATING TO TOBACCO PRODUCTS,"

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to impose an excise tax on tobacco products other than cigarettes, little cigars, and large cigars that is equivalent to the tax imposed on a standard package of twenty cigarettes or little cigars to impose additional deterrents to smoking. 

 

     Your Committee received testimony in support of this measure from the American Cancer Society Hawaii Pacific, Inc.; Coalition for A Tobacco-Free Hawaii; American Heart Association; the Hawaii COPD Coalition; Filipinos for Affirmative Action; Filipino American Citizens League; Tobacco Education and Assistance Program; Asian American Network for Cancer Awareness, Research and Training; Oahu Filipino Community Council; and thirty-six private citizens.  Your Committee received testimony in opposition to this measure from one private citizen.  Your Committee received comments on this measure from the Department of Taxation, University of Hawaii System, and Tax Foundation of Hawaii.

 

     Your Committee received testimony stating that, because adolescents and young adults are two to three times more sensitive to tobacco price changes than adults, increasing the price of smokeless tobacco will result in fewer youth using smokeless tobacco.  Other testimony suggests that as cigarette taxes rise, smokers are more likely to consider smoking cessation, which should result in a decline in the serious health conditions that arise from the use of tobacco.  Your Committee heard and agrees with testimony in support of using a portion of the tax revenue generated by this measure for preventative services and programs.

 

     Accordingly, your Committee has amended this measure by:

 

     (1)  Requiring ten percent of the revenues generated by the excise tax imposed by this measure to be used by the Department of Health for programs and services aimed at smoking prevention; and

 

     (2)  Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

 

     As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 233, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 233, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Health,

 

 

 

____________________________

JOSH GREEN, M.D., Chair